mittelsmann

Coins

For Millenium, the standard for coins is gold. One of the oldest civilizations known to man, the Sumerians of Mesopotamia, who lived in what is modern-day Iran and Iraq, first used gold as sacred, ornamental, and decorative instruments in the fourth millennium B.C.E. Around the same period, the early Egyptians —the richest gold-producing civilization of the ancient world — began the art of gold refining. Like the Sumerians, the Egyptians used gold primarily for personal adornment, rather than for monetary purposes, although the kings of the fourth to sixth dynasties (c. 2700 - 2270 B.C.E.) did issue some gold coins. The first large-scale, private issuance of pure gold coins was under King Croesus (560-546 B.C.E.), the ruler of ancient Lydia, modern-day western Turkey. Stamped with his royal emblem of the facing heads of a lion and a bull, these first known coins eventually became the standard of exchange for worldwide trade and commerce.

Gold is traditionally weighed in Troy Ounces (31.1035 grams). It has a specific gravity of 19.3, meaning that it is 19.3 times heavier than water. So gold weighs 19.3 kilograms per liter. With the density of gold at 19.32 g/cm3, a troy ounce of gold would have a volume of 1.64 cm3. A tonne of gold would therefore have a volume of 51, 760 cm3, which would be equivalent to a cube of side 37.27cm (Approx. 1' 3''). At the end of 2003, Gold Field Mineral Services (GFMS) estimated that above-ground stocks represented a total volume of approximately 150,500 tonnes, of which 61% had been mined since 1950. All the gold ever mined would form a cube measuring only 19m on each side. This cube would, for example, easily fit under the Eiffel Tower in Paris.

The proportion of gold in jewelery is measured on the carat (or karat) scale. The word carat comes from the carob seed, which was originally used to balance scales in Oriental bazaars. Pure gold is designated 24 carat, which compares with the "fineness" by which bar gold is defined.

The most widely used alloys for jewelery in Europe are 18 and 14 carat, although 9 carat is popular in the UK. Portugal has a unique designation of 19.2 carats. In the United States 14 carat predominates, with some 10 carat. In the Middle East, India and South East Asia, jewelery is traditionally 22 carat (sometimes even 23 carat). In China, Hong Kong and some other parts of Asia, "chuk kam" or pure gold jewelery of 990 fineness (almost 24 carat) is popular.

The study of coins is termed numismatics, which comes from the Greek root nomos, meaning: usage, custom, or law. Interestingly, this Greek root is the basis for two different words in the English language, numismatic and nimble. Yet both of these words help us understand that the use of coins comes from the original concept of distributing, or taking according to law; managing resources according to what was customary.

Nonetheless, studying coins is more than admiring the intrinsic value of a precious metal, or the appreciation of beautiful art. Although these are fine qualities that add joy to the study and collecting of coins, the study of coins cannot be accomplished without some curiosity for history (such as the history of gold used as currency). Indeed, a coin or token may be a piece of art, but the historical data represented by that object cannot be denied.

Although coins have been around for Millennium, collecting them as sets and making sets for collecting, began with the Italian Renaissance.

Coins have evolved a great deal since those humble beginnings. Besides the quality of coin manufacturing improving dramatically, the basis for a coins value has changed radically. It was easy to place value on a coin made from precious metal, but today, most coins are an amalgamation of highly available metals that form alloys ready to take on the rigors of the consumer. These new mixtures make the inherent value of the coin negligible. Thus, the value of modern coins is relative to the promise made by its issuing government.

I have included a few links for different minting organizations that you may enjoy visiting.

Royal Australian Mint
Royal Canadian Mint
United States Mint
British Royal Mint